According to Adam Smith's Invisible Hand

question 87

Multiple Choice

According to Adam Smith's invisible hand

• A)markets need the government to intervene.
• B)forces are constantly pushing markets out of equilibrium
• C)people coordinate their activities, resulting in equilibrium in the market.
• D)there is an invisible glove that restricts what markets can do.

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Definitions:

Accounts Receivable Turnover

A financial metric that measures how often a company collects its receivables over a time period.

Inventory Turnover

A ratio indicating how many times a company's inventory is sold and replaced over a specific period, helping assess efficiency in managing inventory levels.

Accounts Receivable Turnover Ratio

A financial metric indicating how effectively a company extends credit and collects debts on that credit; calculated by dividing net credit sales by average accounts receivable.

Inventories

Quantities of goods, raw materials, work-in-progress, and finished products that a company holds for the purpose of sale or production.